Division of Expenses between Sections
Talkstrata » Forums » General Strata Q & ASubmitted by evadbxl on Mon, 11/19/2007 - 09:17.
The Strata Corporation in which I live is divided into three sections: town/house, apartment, and joint. Some expenses affect more than one section. For example, part of the Common Area Cleaning item belongs to the Joint Section, but part (e.g. elevators) belongs to the Apartment Section. It has recently been noted that the actual work done in each section is significantly different from the division of expenses (between sections) in the budget. When this was raised at the AGM, the owners were told that it was obligatory to maintain the division of expenses in the same proportion as shown in the Disclosure Statement (in the Interim Budget) unless there was a unanimous vote to change that. I can find no such restriction in the SPA, but I am not an expert. Can someone provide advice on how our strata can allocate expenses between sections to reflect the actual work?
Wed, 11/28/2007 - 04:43
Hi,
I am very interested in the guide as posted above. For this year our common budget grew by 75% because 40% of the apartments expenses were moved. How do you enforce section item 8?
"expenses that relate solely to the strata lots in a section are shared only by the strata lots in the section"
As a townhouse owner I am now paying for the apartments building maintenance, electricity, fire alarms, security, window washing and more.
When we asked at the AGM they said that since two of the three sections benefit, it is legal. They are referring to the commercial units at the bottom of the apartment. This whole thing suspect as we saw a 30% increase in strata fees for the townhouses and the commercial section saw a 40% reduction.
Should we move?
Thanks
Wed, 11/28/2007 - 19:44
It sounds like you should have three separate sections: apartments, townhomes and commercial.
To create a section, the corporation needs to amend the bylaws at your next AGM or special general meeting. The resolution to amend the bylaws needs 2 votes and then you need a 3/4 vote in favour by the eligible voters in the section and then you also need a 3/4 vote in favour by eligible voters of the strata corporation.
This then would mean that you would pay for your townhome expenses and then a portion for each of the shared common property for the other sections as well.
Are you guys professionally managed? If so I would contact your manager right away to discuss the possibilities. Ultimately you would need to put your suggestion in writing to the strata council and be persistent. You will likely have to educate the rest of the eligible voters in your townhome section. Good luck and please post the results of your efforts!
Wed, 11/28/2007 - 20:33
Hi,
We already have seperate sections. With our own budgets and everything. The townhouses only have about 10% of the total votes, as such, we have little power. The expenses for the townhouses are very small. We pay 5 times the amount toward the common budget compared with the townhouse budget. This is mostly because the common budget grew 75 % this year.
The proffesional property management is unwilling to revisit this issue. When we compalined at the AGM. The property managers said there were inequalities in the budget... and left it at that.
When we asked if we could create a completely new strata, the property managers said we would need 100% of the townhouses on board. As we are new to the place it appears unlikely that we could convince everyone.
Our efforts feel hopeless.
Thanks
Tue, 12/04/2007 - 15:10
Hi Pacesetter - why has your common budget grown 75%, what is the driving force?
I would still write a letter to council outlining your concerns with regards to budget inequalities - if you make enough noise you may get more exposure and answers. And then it will make your case easier to explain and help to get the other owners onboard.
Wed, 02/20/2008 - 18:57
Hi Aislynnr, our common budget grew because expenses that were previously allocated to the apartment section were moved to the common budget. Over $200,000 worth of building maintenance items.
Thanks for the suggestion. I am reviewing the budget numbers and going to write a letter. I don't know how far I will get because the apartments condo fees were essential reduced slightly when the towhouse section started paying a share of their expenses. And almost all of the current council is made up of aparment owners. But as I have learned, the outgoing treasurer and president that pushed through these changes have since sold their units. So their may be some hope.
Fri, 08/15/2008 - 04:47
Yes you are being screwed over like so many of us. Strata managers Like Ardent play GOD with the strata act and forget common sense. The act has to be changed to make up for the voting disadvantages and the Strata Councils have to grow balls of flowers to deal with the strata managers.
Remember that apartment type owners that coexist with townhouse owners for the better part have no common sense, want to play GOD with the strata manager, and for the most part contract stupiditus for the strata managers
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Joined: 2007-11-19